NEW YORK, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Methode Electronics, Inc. (NYSE:MEI) and certain of the Company’s senior executives.
If you invested in Methode, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/methode-electronics-inc.
Investors have until October 25, 2024 to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Methode common stock. The case is pending in the U.S. District Court for the Northern District of Illinois and is captioned Salem v. Methode Electronics, Inc., et al., No. 24-cv-07696.
What is the Lawsuit About?
Methode designs, engineers, and manufactures custom-engineered solutions for automotive original equipment manufacturers. The complaint alleges that during the relevant period, Methode misrepresented the success of the Company’s transition from the General Motors console program to new electric vehicle applications and that the Company’s “higher-margin product mix” would “offset” any decline in income from the General Motors program. In truth, Methode’s transition to electric vehicles had been plagued with operational, logistical, and personnel challenges that negatively impacted the Company’s business.
On September 7, 2023, Methode announced financial results for 1Q 24. The Company disclosed that “operational inefficiencies” in the Company’s North American operations had negatively impacted earnings for the quarter and were expected to linger into the second quarter. On this news, the price of Methode stock declined by $6.67 per share, or over 22%, to close at $23.33 per share on September 7, 2023.
On December 7, 2023, Methode announced financial results for 2Q 24. During the quarter, the Company’s Automotive Segment generated only $154.3 million in net sales and suffered a $61.5 million loss from operations. The Company also disclosed a $56.5 million goodwill impairment in the Company’s North American and European Automotive Reporting Units. On this news, the price of Methode stock declined by $2.87 per share, or almost 12%, to close at $21.52 per share on December 8, 2023.
On March 7, 2024, Methode announced financial results for 3Q 24 and withdrew all prior guidance. The Company also announced it was taking urgent actions to reduce costs, such as by reducing headcount and discretionary expenses and by disposing of non-critical assets. On this news, the price of Methode stock declined by $6.55 per share, or over 31%, to close at $14.49 per share on March 7, 2024.
Finally, on April 8, 2024, Methode announced that its CFO would be retiring from the Company effective July 12, 2024. Less than one month later, on May 6, 2024, Methode announced that the CEO had resigned just three months into his tenure.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/methode-electronics-inc.
What Can You Do?
If you invested in Methode, you have rights and are encouraged to submit your information to speak with an attorney.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses. Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/methode-electronics-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/methode-electronics-inc
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